FARM FIRM MICRO-ECONOMETRIC MODELLING:EMPIRICAL EVIDENCE FROM RUSSIAN DAIRY FARMING

This study develops a micro econometric model of specialised dairy farms in Moscow Region using panel data over the period 1995-1998. The model is used to analyse the role of input and output subsidies in the on-farm decision making. Theoretical conditions for short term profit maximization and the fixed effect specification are not rejected by the data. Estimates of the parameters related to input and output subsidies are found to be highly significant. The effect of output subsidies on milk output supply is larger then the price effect. Output subsidies are allocated efficiently in the period 1996-1998 and inefficiently in 1995; input subsidies are allocated efficiently in 1995 and inefficiently in 1996-1998.


Issue Date:
2001
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20464
Total Pages:
19
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-22

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